"With the plant closings at semiconductor suppliers in Malaysia and elsewhere, the challenge has now become even greater, so that our sales in the third quarter will probably be noticeably below the second quarter," Ola Kaellenius says
Volkswagen still expects to achieve a 2021 operating profit margin of between 5.5% and 7% for the group and a margin of 3% to 4% for its main brand, a spokesperson for the company said.
From delayed car deliveries to a supply shortfall in home appliances to costlier smartphones, businesses and consumers across the globe are facing the brunt of an unprecedented shortage in semiconductor microchips.
Originally concentrated in the auto industry, the shortage has now spread to a range of other consumer electronics, including smartphones, refrigerators and microwaves.
The need for increased personal safety during the COVID-19 pandemic has boosted sales for automakers, as people prefer to travel by their own cars to using public transportation.
The No.1 US automaker said it estimates that the seasonally adjusted annual sales pace for the first quarter of the year was around 16.7 million units.
The action was factored into GM's prior forecast that it could shave up to $2 billion off this year's profit, spokesman David Barnas said.
Semiconductors are used extensively in cars, including to monitor engine performance, manage steering or automatic windows, and in sensors used in parking and entertainment systems.